5 Ways to Save On Your Mortgage

Brought to you by Sterling Savings

Do you ever wish you could put your mortgage payment on a diet? Get that bulky number down to something nice and trim in time for swimsuit season. Many of homeowners believe that they are stuck with the current payment they are making. You’re not. Times change and better deals appear. There are little things you can do instead of sending your mortgage off to weight loss boot camp. Here are some ways to reduce your monthly payments:

Get a better deal
There are loads of great offers on the market. Look at what you are working with and see if anything better is out there. Remember that the ball is in your court.

Pay off your capital early
If you have an interest-only mortgage, such as an endowment or ISA mortgage, you could pay off your loan early by making regular additional repayments against the interest.

Change your interest calculation
Daily interest calculation has been established for a while in other parts of the world but more and more lenders over here are switching to it. Basically, the advantage of switching to this calculation is that if you make a repayment it immediately impacts on the interest accruing on your mortgage.

Refinancing a home loan with an Interest Only Option
Have you heard of interest only mortgage options? Some folks find this program very handy and flexible, and depending on your current situation an interest-only refinance might be a solid choice. The program is just as it sounds - you are only required to pay payments towards your interest each month. This usually reduces the payment significantly. You can always put money towards your principle when you want; it just takes a larger payment. There are pros and cons to every refinance option so make sure you're educated before choosing.

Refinance for a smaller loan to value
Chances are your property has increased in value since you took out your original loan. Therefore, the percentage of the loan to the value of your property will have decreased as well. So it could be well worth investigating whether you can get a better deal - many lenders offer significantly better terms for people borrowing less than 75% LTV. Make sure you have your property valued properly though, and shop around for a lender that will cover your valuation fee.

If you would like to see what kind of new numbers you can get from your mortgage, use Sterling Savings free online mortgage calculator.